Extending paid holiday entitlement
Government announces consultation on the increase of paid
holiday entitlement under the Working Time Regulations to include public
and bank holidays.
The DTI has announced a consultation on extending the current right
for all workers to 20 days’ paid leave each year by a further 8 days to
reflect bank and public holidays “UK Holidays”).
If after the consultation the government decides to proceed with
legislation to extend leave entitlement, the result would be that all
workers will be entitled to 28 days paid holidays instead of 20 days.
Some issues
Most employers already absorb UK Holidays as paid, since most employees are not paid on an hours worked basis.
However an extension of leave entitlement would particularly affect
employment businesses supplying paye temps, who are paid on an hours
worked basis only.
The net result of any extension would be to push the amount
attributable to holiday pay up from the existing 8.33% of normal rate to
12.07% resulting in a higher pay out by the employment business or
employer. However, the calculation changes if the rate is not charged
over a full year.
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Adrian, a highly experienced lawyer, founded Lawspeed in 1997. He is responsible for developing our extensive portfolio of products and services, including the widely used Lawspeed contract templates. Adrian is an expert on “recruitment law” and specialises in contracts, regulatory compliance, employment status and dispute handling. He is chair of the trade body the Association of Recruitment Consultancies, the only lawyer lead recruitment trade body in the UK. Adrian and his co-director Ravi devised Standards in Recruitment as a vehicle for helping drive up standards and compliance in the industry.
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